Ethereum's price has been on a bit of a rollercoaster lately, almost wiping out all the gains it made since the start of 2024. But hey, hold on to your hats because things might be about to get interesting!
Over the past 24 hours, there have been some hints that a change could be on the horizon. If you peek at the daily chart, you'll see Ethereum doing a bit of a dance between $2,100 and $2,700. It's been stuck in this range, but the good news is that the price drop seems to have hit the brakes. However, the market is still playing hard to get, and we need to see Ethereum break past $2,700 to call it a win.
Now, here's where it gets exciting. There are signs that a price bottom might be forming, which could pave the way for a new uptrend in the coming months. Of course, this is all contingent on the $2,100 support level holding steady.
Zoom in on the 4-hour chart, and things look even more promising. Ethereum bounced off the $2,100 support zone and has been inching upwards. The momentum isn't exactly setting the world on fire, but the bullish 4-hour candles are getting stronger, hinting that an impulsive move towards the $2,700 resistance level could be just around the corner.
But wait, there's a twist! On-chain analysis throws a bit of a curveball. The Ethereum exchange reserve, which tracks the total amount of ETH held in exchanges, has been on a downward slide as investors have been hoarding ETH since last year. However, every time this reserve metric pops above its 30-day moving average, Ethereum's price tends to take a dip.
And guess what? The exchange reserve is currently on the rise, sitting above that 30-day average. This means a short-term price drop could still be in the cards if there's not enough demand to soak up the supply.
So, buckle up, crypto enthusiasts! Ethereum's journey is far from over, and the next few months could be a wild ride. Keep an eye on those charts and stay tuned for more twists and turns in the world of Ethereum!
